Presented by Anita Eide, Enova SF, Norway, at the IEA DSM Programme workshop in Copenhagen, Denmark on 19 April 2006.

1. Drivkraft for fremtidsrettede energiløsningerDrivkraft for fremtidsrettede energiløsninger
Measuring and verifying energy savings within the
Energy Fund Model in Norway
Anita Eide
Enova SF
IEA DSM Seminar
Registration and validation of energy saving activities –
Practical experiences and cost-effective
solutions
Copenhagen, 19 April 2006

2. Drivkraft for fremtidsrettede energiløsninger
Presentation Outline
• Short background on Enova, Energy Fund and Organization
• Philosophy and Guiding Principles
• Programmes and Measures
• Measurement and Evaluation
• Challenges Ahead

3. Drivkraft for fremtidsrettede energiløsninger
Short background, Enova
• State enterprise owned by the Ministry of Petroleum and Energy
• Establishment ratified by the Norwegian Parliament in 2001
• Operational as of January 1, 2002
• Staff of 30
• Programme coordination, etc. carried out by sub-contractors

4. Drivkraft for fremtidsrettede energiløsninger
Short background, Energy Fund and Organization
• Annual budget of approx. € 80 million
• Funds originate from levy on transmission of electricity for
domestic consumption
• Funds channelled into an Energy Fund
• Enova appointed fund manager
• Enova’s activities are governed by a 4-year contract with the
Ministry of Petroleum and Energy
• Enova submits annual performance reports to owner
• Overall third party evaluation of Enova to be carried out in 2006

5. Drivkraft for fremtidsrettede energiløsninger
Objectives and targets, by 2010
Overall objective: To achieve environmentally friendly production and use of energy
in a cost effective manner and reduce dependence on electricity for heating
Overall target: 12 TWh/year in savings, renewable energy production and heat
Specific objectives and targets:
• Limit energy use considerably more than if developments were allowed to
continue unchecked
• Decrease dependency on electricity for heating and increase use of central
heating systems based on renewable energy sources, heat pumps and waste
heat of 4 TWh/year
• Increase wind power generation by 3 TWh/year
• Increase environmentally sound stationary use of natural gas (substitution of
more polluting fossil fuels)

6. Drivkraft for fremtidsrettede energiløsninger
Philosophy and guiding principles
• Market oriented approach to its “business” and operations
– work with the grain of the market in cooperation with market actors,
including strategic alliances with market and technology leaders
– influence both supply and demand for energy efficient solutions and
building practices to achieve market transformation, both in terms
of building design, building practices, purchasing behaviour, and so
on
• Programme coordinators and consultants are actively pursuing and
recruiting project proposals to Enova’s programmes in the market place
• Competence of Enova staff and consultants essential to the
development of project proposals, their assessment and
implementation

7. Drivkraft for fremtidsrettede energiløsninger
Overview, programmes and instruments
Instruments and measurement
Households Activity
Programmes
Investment aid Information Training
New and existing buildings Energy
performance
Activity Activity
Industry Energy
performance
Activity
Public sector Energy
performance
Activity Activity
Wind power Energy
performance
Heat Energy
performance

8. Drivkraft for fremtidsrettede energiløsninger
Measurement and Verification in Practice
Bottom-up approach
– Aggregation of energy results from individual projects within each
programme
Basis for measurement and target setting at project level:
– Project proposal submitted electronically to Enova
– Contract negotiation
– Contractually agreed energy performance and savings target and
reporting requirements

9. Drivkraft for fremtidsrettede energiløsninger
Project assessment, a building’s case (1)
Proposal demonstrating and documenting:
– Baseline against which energy performance and efficiency is
judged
– Energy performance or energy efficiency improvement potential
– Overview of measures to be implemented and energy saving
scores for each measures (derived from engineering data, models
and empirical research which are distilled in tools such as “Enøk
Normtall”)
– For existing buildings, overview of past energy use, minimum of
three years of historic data
– Identify and pinpoint energy savings target

10. Drivkraft for fremtidsrettede energiløsninger
Project assessment, buildings (2)
• Fair return on applicant’s invested capital
– Avoid over compensation (to comply with State aid
regulations)
– Net present value methodology
– Risk assessment
• Project risk reflected in cash flow
• Market risk reflected in the rate of return (CAP and
WACC)
• Cost effectiveness
– Competition between projects for investment aid based on
NOK/kWh

11. Drivkraft for fremtidsrettede energiløsninger
Overview Measurement and Evaluation Approach
Objective
Default method
(off-site)
Project Assessment:
Assessment of financial
aid needed based on a
NPV calculation
Prioritizing
between the
projects
Project
assessment based
on application
Risks, uncertainties, competence,
energy efficiency, technical
installations and solutions, project
baseline
Criteria:
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10
kWh/kr
0
2
4
6
8
10
12
1 2 3 4 5 6 7 8 9 10
kWh/kr
NPV
0
min.
Prosjekter
Maksstøtte
Støtte til prosjekt i

12. Drivkraft for fremtidsrettede energiløsninger
Enova’s Buildings’ Statistics
• Repository of implemented energy efficiency projects in the buildings
sector funded by Enova
• Project owners’ must report actual energy use annually for 3-5 years
after project completion
• Established in 1996 by NVE
• Contains in excess of 2,200 buildings
• Report published annually (currently only in Norwegian)
• Means to assist in monitoring and reporting of the market uptake of
energy efficiency and change in planning and building practices
• Means to assist in targeting of efforts within Enova’s programmes

13. Drivkraft for fremtidsrettede energiløsninger
Energy use in buildings
214
259
167
250
310
188
219
322
183
226
316
184
246
286
170
303 300
155
0
50
100
150
200
250
300
350
Kontorbygning Hotellbygning Skolebygning
kWh/m2
før 1931
1931-54
1955-70
1971-87
1988-97
etter 1997
23 13 47 71 29 12 20 11 12 15 10 12 29 42 162 104 29 5
Source: Enova’s buildings’ statistics

14. Drivkraft for fremtidsrettede energiløsninger
Office buildings, variations in consumption
0
100
200
300
400
500
600
700
800
kWh/m2
Kontorbygninger
Gj.snitt 229
Source: Enova’s buildings’ statistics

15. Drivkraft for fremtidsrettede energiløsninger
Energy performance results, 2001-2005
Programme areas: Energy end-use, wind, heat and new technology
0
1000
2000
3000
4000
5000
6000
7000
2001 2002 2003 2004 2005 Totalt
GWh(Kontraktsfestet)
Ny teknologi
Varme
Vind
Energibruk

16. Drivkraft for fremtidsrettede energiløsninger
Cost effectiveness, all programmes
• Cost per kWh
– Energy efficiency: 0,024€
– Heat: 0,024€
– Wind power: 0,05€
• Average cost over lifetime
– Energy efficiency: 0,0024€
– Heat: 0,0012€
– Wind power: 0,0024€
• Life time buildings’ projects average of 10 years

17. Drivkraft for fremtidsrettede energiløsninger
Overall programme measurement and evaluation
Aggregation of
Project Savings’ Targets
Third Party
Project Auditing and
Verification
Annual Reports,
Energy Performance
Periodic Third Party
Programme Evaluations
• Aggregated contracted energy results reported annually by Enova to the Ministry
• Results adjusted based on annual project reports, programme evaluations and project
auditing/verification
• Evaluation costs account for about 0.5% of total annual investment aid granted by Enova
• So far Enova has not carried out third party auditing and verification of individual projects,
thus some uncertainty about the energy results exist

18. Drivkraft for fremtidsrettede energiløsninger
Challenges Ahead, Measurement and Verification in
view of EE Directive
Enova, programme level:
• Development and implementation of third party verification of actual
energy savings
• Double counting
• Methodology to account for market transformation and attribution
effects
National level
• Major challenge to estimate, evaluate and verify the energy savings
from early action and policy measures outside of Enova’s responsibility
– Especially to avoid double counting
– To isolate autonomous energy savings

19. Drivkraft for fremtidsrettede energiløsninger
Thank you for your attention!
For more information regarding Enova, please contact
Anita Eide at
anita.eide@enova.no
+47 99 21 27 70